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Topic: Peformance Appraisals and Salary Increases

Messages (3) Visitors (495)

Member since 05/30/2007
Peformance Appraisals and Salary Increases
09/16/2008 / 9:21 am    #1

Hello everyone,

I currently work in the HR department for an unprofitable company in Markham, Ontario. Unfortunately, due to lack of profit, we are unable to administer steady salary increases. Therefore, the following problem arises:

If you are unable to increase salary do you still provide employees with performance reviews? If so, how do you justify not supplying a salary increase?

I was hoping that someone could provide me with insight in regards to normal best practices in Ontario for the above situation.

Any advice would be greatly appreciated.


Member since 02/07/2007
Re: Peformance Appraisals and Salary Increases
06/03/2010 / 10:55 am    #2

My wife's company made an announcment last year that there would not be any merit increases due to company profitability. She was not given a performance review which was frustrating.

I believe the right thing to do is announce that there will not be raises; yet follow through on delivering performance reviews so the conversations can be focused on individual performance vs why there are not raises.

That my two cents.


Member since 02/04/2008
Re: Peformance Appraisals and Salary Increases
08/16/2010 / 5:03 pm    #3

Even if there are no compensation increases it is still very import to stick with performance reviews, if not more important. That is when you communicate what an employee needs to work on to be more productive and make the company more profitable. In turn this helps bring back compensation increases and boost company morale. Another thing to remember is that if you drop the performance reviews and don't track the performance of your employees there could end up being increases, when they are brought back, where they aren't due creating a lot of tension within the organization.


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